___________ is a policy provision ensuring continued insurance coverage for the insured's lifetime as long as premiums continue to be paid.
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A. B. C. D.B
The correct answer is B. Guaranteed Renewability.
Guaranteed Renewability is a policy provision in an insurance contract that ensures the continuation of insurance coverage for the insured's lifetime as long as premiums continue to be paid. This provision is often found in health insurance policies, long-term care insurance, and disability income insurance.
With guaranteed renewability, the insurance company cannot cancel the policy or refuse to renew it, even if the insured develops a health condition or becomes high-risk. However, the premiums may increase over time, based on factors such as age, health status, and claims experience.
It is important to note that guaranteed renewability does not guarantee a fixed premium rate or a specific level of benefits. The insurance company may change the premium rate and benefit structure for all policyholders in a particular class, as long as it does so uniformly and with proper notification.
In contrast, optional renewability is a policy provision that allows the insured to renew the policy at their discretion, but the insurance company may refuse to renew or change the terms of the policy. A waiting period is a period of time during which coverage is not available for certain conditions or events, even if the premiums are paid.